.. dagen: "varney & company" no. stuart, take it away. stuart: dagen, thank you very much, indeed. today we cover an impending weather disaster. hurricane harvey, here it comes. good friday morn, everyone. this is a financial program, but this hurricane is a human story. the people of south texas face a strengthening storm that will bring an unimaginable deluge of rain, and it'll stick around to drench louisiana as well. it is the biggest storm to hit america in a dozen years. follow it with us throughout the program today. we're watching those refineries on the gulf coast for the supply and price of gasoline. and we're watching out for you,

our viewers, who face a very tough weekend in that part of the country. this, too, is breaking as we speak, a barnstorming tour for president trump. he's on the stump for tax cuts just like ron reagan. he starts next wednesday in springfield, missouri. it's now a hands-on, all-out push for the centerpiece of the trump growth agenda. "varney & company" is about to begin. ♪ ♪ stuart: well, you're looking at a happen of the race in the gulf of mexico that may be affected by the storm. there's a lot of them, as you can see. perhaps more important, onshore in corpus christi alone there are five refineries, some of which have shut. that will affect the supply and price of gasoline over a very wide area. but, you know, look, i don't want to make this a financial story, because it's not. >> no.

stuart: this is a human story. our viewers are facing this thing. >> yeah, this is of biblical proportions. when you talk about 20 inches, some computer models say up to 40 inches. tremendous amounts of rain stuck over the same area for days at a time and, of course, you mentioned this earlier. if this storm starts drifting a little bit to the east, you've got new orleans, a city that that's basically built in a bowl. the human cost could be very high. certainly, the flooding disastrous. stuart: lizzie, we get almost passe about this kind of thing. i remember yesterday on the show where janice dean was telling us about maybe 20, 25 inches of rain, and you and i were doing this, trying to imagine what is 25 inches of rain. now let's deal with 40 inches that may come on that coastal strip. >> yeah, u.s. government shows that that nine of ten deaths come from flooding and storm surges in hurricanes.

we always talk about wind speed, it's really 90% of the deaths come from flooding, people drowning and losing their lives from storm surges. so that's the issue right now. you know, the cat three is extremely powerful. we've lost hundreds of people in just last year's hurricane season which was not that eventful. stuart: you got it. what would it be like to be the governor of a state facing that kind of onslaught? let's bring in former governor of arkansas, mike huckabee. governor, i'm sure -- perhaps you've not been in exactly the same situation, but you've paced this emergency. what goes i through your head as soon as you realize what's coming at you? >> well, you do really three things. first, you plan for the retreat and evacuation, then you look at the rescue operation, and the third thing is the recovery when the storm is finished. when you're talking about flood waters, you're really talking about the single most dangerous thing. when people say, oh, it's a cat two hurricane, doesn't matter. what really matters here is the

need waters, because 6 inches of water moving knocks you off your feet. ten mile-an-hour water moving has the effect of 270 mile-per-hour winds. and people underestimate the force of water. and so what you to do is -- you too far is start standing up your assets well in advance of the storm. i guarantee you governor abbott in texas has already done that. a second thing he's done is established a command center, bringing all of his agencies into one place where they can network together and demoy the assets as needed -- deploy the assets as needed the moment they're needed. and the third thing, he's activating something called the emergency management assistance compact. this is where he can actually request assets from other states if he needs more trucks, if he needs more water, if he needs helicopters. and he has run out of resources within his own sort of

inventory,en then he can call upon states anywhere in the country, all 50 states are a part. those governors will then send those assets that they have to texas and give that governor assistance during the storm. stuart: and it would be the governor of the state who is judged on their performance. how well dead you handle -- did you handle this disaster. it's a political judgment but a very important judgment nonetheless. >> i've always said to an incoming governor, and i used to sort of train them for the national governors' association. on day one the most important thing you need to be prepared for and the number one staff position you need to have is your emergency management director, because you don't know when the tornado's coming, you don't kno when 30 inches of rain may hit and create a flood. you'll have a few days' preparation for a hurricane, but the point is it's the one thing for which people will not forgive you if you mess it up. it shul is the most important test, and to be prepared in advance is important. how do you request manage the

aftermath, what do you do with people who are displaced. let me make a suggestion. when we had the effects of katrina and rita tabak in 2005, we ended up with 75,000 people displaced out of louisiana in our state. a lot of particular, i guess, traditional methods is put people many big arenas. that's a big mistake because everything can go wrong this. right now here at the beginning of, let's say, the end of august, the beginning of september summer camps are closed and, stuart, the smart thing, activate those summer camps that haven't been winterizedded, give access to people. let the state run them, but access every church and scout camp you can. it's a good place for people to be because they can be fed, housed, showered and protected. stuart: texas is listening, governor. thanks for joining us this morning. >> thank you. stuart: that's politics. that's the hurricane, that's weather, look at must be.

we're going to -- look at money. we're going to go up, i've got to believe that's got something to do with the president's barnstorming tour beginning next wednesday in support of tax cuts. i think that's got something to do with the gain for the dow. individual companies making a lot of news today. look at amazon. they've taken charge at whole foods. they are lowering prices. [laughter] and there is the amazon effect. it has hit grocery stockings again. look at these guys, these companies, i should say, these stocks since the merger was approved. look at them go down. same story for processed food stocks, and these are global, giant companies. why buy packaged,s processed foods when you can buy fresh good at a lower price? get your kale cheap, perhaps delivered by amazon. [laughter] i'm not being sarcastic, those are global companies, all of them on the downside. then we have apple, reportedly planning to unveil an upgraded

apple tv set box. i have no idea what this thing is -- [laughter] but it can stream 4k video, highlight live content like news and sports -- >> are you finally going to start streaming? stuart: of course. [laughter] we'll get to that in a second. i've got to get back to politickings. you know, it's no secret that president trump is at odds with arizona senator jeff flake. just called him toxic, by the way. on wednesday i asked the state treasurer, jeff dewitt -- he's a trump guy -- if he would run for jeff flake's senate seat. would he primary him. roll tape. >> whatever it takes to get east them to come around or representation that is strong on the border, that wants to build a wall, that wants to protect taxpayers and does want tax reform, i'm for those things. i want to see those things happen very much, and who knows what it's going to take to get it there. stuart: it was a fun interview. guess what? he's back for more. [laughter] >> in person.

stuart: yes, indeed. jeff dewitt and robert graham, former republican party chair in arizona. you met with the president. bottom line to me is you are president trump's leverage over senator flake. if senator flake makes a move, you've -- a wrong move, you've got a deal with president trump to primary him, haven't you? [laughter] >> well, if you didn't see the book that came out, the wrong moves have been made. i will say that. [laughter] but president trump understands, i'll tell you, he understands the races in every state. he really pays attention, and he understands too he really wants in this next election cycle to try to get the senate to the the 60-seat majority because he's trying to get his agenda done. stuart: you're part of the threat that president trump is hanging over the heads of congress. let's leave it at that, because i know you can't say anymore. [laughter] i want your comment on this

barnstorming tour president trump is starting next wednesday. >> he is going out and selling his plan to the american people. he did sit back for the first six months, and he trusted congress to enact the agenda and, quite frankly, they failed. so he's taking it upon himself now to go and get it done, and he will get it done. he made promises, he wants to deliver on those promises to the people. and i think congress is going to realize they need to get on board especially when he goes to all their home states and delivers messages right to their voters. they will realize that the president is trying to enact the agenda, it is not him that's holding things up. stuart: i think you'll see voters are on his side in this dispute. if it's trump versus the congress, i think you'll see voters on trump's side. >> he will win. yes, absolutely. stuart: why did you come back today? you knew what was coming at you. [laughter] >> because i love you guys, you know that. any chance to hang out with you -- stuart: yeah, yeah, yeah. it is really appreciated, thank

you, you're a good man. president trump's top economic adviser, gary cohn, he says, oh, yes, he did face a lot of pressure to resign after charlottesville, but he made the decision to the stay with the president out of a duty to serve the american people. he says he wants tax reform. get it done. wild baseball game in detroit. look at this, please. the yankees played the tigers. players got beaned by pitches not one, not two, three bench-clearing brawls. players, managers ejected from the game. up next former baseball star aubrey huff, what'd he think about it? [laughter] >> calling in the troops. stuart: it's the friday edition of soarny and -- of "varney & company." of course, we're following hurricane harvey all morning. this has the potential to be truly a devastating storm. see that? 25 inches of rain, let's update that, near 40 along the coast. evacuations have started. just look at that expected

rainfall. potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)

stuart: not one, not two, but three bench-clearing brawls broke out between the tigers and the yankees in a game yesterday. come in -- [laughter] we'll let you watch this for a second, but let's put the camera on aubrey huff, two-time world series baseball champ. welcome to the show. >> stuart, thanks for having me on. stuart: you must have seen something like that many times -- >> many times. interestingly enough, miguel cabrera was a teammate of mine. surprising the me -- look at that. >> he was so soft spoken, miguel cabrera. and what's interesting about this game is he gets thrown -- the pitch gets thrown behind miguel. five minutes go by, the pitcher gets thrown out, and the catcher gets in his face. five minutes later, and miguel

doesn't say much, hardly at all. and the catcher gets right in his face. i wonder what he said to him to set him off. something he said right here. right here, boom. >> oh! it had to be pretty strong. >> and miguel is a big guy. if he lands that punch to that catcher, he's out. [laughter] stuart: i think baseball fans like it. >> strangely. >> baseball fans love it. the players -- interestingly enough, most of the rivalries, stuff like this right here, it happens throughout the course of season. you're going to get thrown at. , it's part of the game with. all these rivalries that you hear, the dodgers, the giants, the yankees, red sox, that's a fan and media-driven thing. more us, you know, for the most part you're going to go play the game, and you might even have a friend on the dodgers, have dinner with him after the game. [laughter] stuart: you're right. do you think the fights we just put on the screen will be bigger and better hand the fight tomorrow night between mayweather and mcgregor?

>> i'm an irish match, so i'm rooting for connor mcgregor. i think the only to chance he has to win this match is if he goes after mayweather quickly. i don't think he can outlast him. i know connor's younger, and i know some mm eight fears -- mma fighters, and these guys are crazy. they're nuts. it's going to be hart to get hit down. stuart: mayweatherrer, $400-$450 million. huge numbers. >> you better hope it goes more than two rounds. [laughter] stuart: now, i want to ask you a very serious question. i know about your book, and i know that you have recovered from drug addiction, specifically to adderall which is a form of speed. how'd you get off it? >> for me, i was suicidal on it. i got out of baseball, and i went through addiction, depression, anxiety.

a lot of faith, a lot of prayer, exercise, mindset, you know? it's -- i went through rehab. i got through rehab and, you know, i knew i had a story. i wrote a book about it, and that's pretty much where i am. stuart: how long were you addicted to this stuff? >> three years. stuart: for three years -- >> wow. stuart: and how long did it take to really get off it, absolutely clean. how long? >> there's days today i go by and i'm like, gosh, almighty, i would really like an adderall. >> really? >> absolutely. stuart: but you have not gone back to it. >> no, i have not. there's always that little thing in the back of your mind that says, man, today would be better with an adderall. praise god, i'm in a great place in my life. my family life is great, my kids, my family's blessed. never happier. stuart: it was a pleasure having you on the show. just so happened there was a baseball fight -- [laughter] >> perfect timing.

that's right. stuart: it was great. you're an honorable and decent man, and you're all right. >> i love youring accent, it's beautiful. voice of an angel. [laughter] stuart: thanks, aubrey. good luck, sir. new survey, what does it find? eight in ten americans live paycheck to paycheck. i'm not prepared to believe that, but nonetheless opportunity it show that president trump's growth agenda is more important than ever? >> yeah. stuart: yes, it is. we'll be back. don't let dust and allergens get between you and life's beautiful moments. switch to flonase allergy relief. flonase outperforms the #1 non-drowsy allergy pill. when we breathe in allergens, our bodies react by overproducing 6 key inflammatory substances that cause our symptoms. flonase helps block 6. most allergy pills only block one and 6 is greater than 1. with more complete relief

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stuart: we said r said this is not a financial story, the hurricane, that is, but there is a financial impact. we're calling those hurricane stocks. generac, they make generators, of course, home depot, lowe's, home repair, all of that kind of thing. all of them are up today as hurricane harvey approaches south texas. i'm going to give you a number which i'm not sure i really believe, but it's a number nonetheless. here it is. 78% of full-time workers say they live paycheck to paycheck. it was 75% last year. this is from a report from carebarreled, okay? -- carebuilder. joinings now is andy puzder. andy, maybe you know more about this than i do, but i'm not inclined to believe that eight

out of ten americans are paycheck to paycheck. it's not that bad, is it? >> well, it's certainly not that bad if you're in the upper income level. look, this is just like a business, it's revenue and costs, and these people aren't bringing in enough income to cover the costs of living in states like california and new york. so i think a percentage of them are going to be there. but if you make over $100,000 a year, the percentage comes down to 9%. if you make 50-$100,000 a year, it comes down to 28%. stuart: hold on a second. so $50-$100,000 a year, i'd call that sort of middle -- doing okay, middle america. it's only 20% paycheck to paycheck, that's correct? >> 28. close to 30. stuart: so the paycheck to paycheck bunch are concentrated in under $50,000 a year. >> exactly. stuart: my question is how will tax cuts help them? >> well, again, it's just like you're running a business. if you can reduce your costs, you're better able to make a profit or to break even -- stuart: but they don't pay tax.

they don't pay federal tax. >> well, people who do pay tax would give you a benefit. what those people also need is a reduction in health care costs. we've got huge health insurance premiums and huge deductibles, so we need a reduction there, and we need to train these people for better jobs so they can increase their incomes. we've got 225,000 construction jobs, 388,000 manufacturing jobs that people can't fill because they don't have employees with the training. so we need to train people, we need to educate people, we need to get them into better jobs, and we need to reduce their costs which we can do through tax reform and health care reform. now, i wish we could do health care reform. we let that one pass. we really need to do tax reform. stuart: stay there, andy. we're going to open the market in just a moment. everybody's waking up and saying where is harvey. let me show you. it's a cat two storm probably going to a cat three. it's real close to the south coast of, the gulf coast, i should say, of texas.

and moves on from there, may hover for a while. that's the status right now. we're talking significant rainfall. >> yeah. stuart: dow industrials, we'll open a little bit higher moments from now, and you can watch it. parodontax, the toothpaste that helps prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey

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♪ ♪ stuart: all right.

15-odd seconds to go, and we'll open this market on a friday morning. we're probably going to go up just a little bit. hanging in the background is hurricane harvey. we're tracking that progress throughout today's show. i don't expect it's going to have a major impact on the stock market. gas and oil to, that's a different story. bang, we're off, we're running. i see some green appearing very quickly on the left-hand side. up 30 points, 21,818 is where we are right now. of course, we're watching the price of oil with hurricane harvey right bearing down on the texas gulf coast. the price of oil is right there at $47 a barrel. no change in the price of oil, maybe the fraker ors will make up -- frackers make up the shortfall. the price of gas is what we're going to discuss in a moment. look at the oil-drilling stocks, all of them on the upside. i guess that's explained by, well, i guess that's higher

prices for the end product. >> yeah. stuart: i would guess that's what's going on. the real hurricane stocks are home depot and lowe's, home improvement companies that may benefit from new supplies required after this hurricane. don't forget the airlines and don't forget united continental which has a major hub in houston which will bear a lot of the brunt of this storm. and we have, okay, i missed them there for a second. advantagely enough, i think -- strangely enough, i think i saw united airlines on the upside. look, i can't explain this, and i'm not going to try. suffice it to say, united is up. ashley is here, elizabeth is here and andy puzder as well. all right, i think the major impact of this storm -- if you're talking finance here, and everyday live ares -- is going to be the price of gasoline. ash, what have you seen from these people who have said it's going up? >> well, we've got phil flynn at price futures group says he's

seen prices go up 10% since wednesday. we're looking at 15. he believes the 25 cents extra per gallon because of the major impact of the storm with regard to oil is the refineries. st the refinery hub in this part of the country, and shutting them down, this storm and the potential it brings could really put a, you know, a halt to the production from the refineries. stuart: are these guys saying the price of gas goes up all across the country? >> yes, all across the country. stuart: 15-20 cents per gallon. >> about 45% of the refining operation is in that area of the country. of the entire u.s. stuart: jeff, if you were smart, get out and fill up your tank today? >> like everyone's saying, there's a third of the refineries in the gulf for the nation's production are there. one thing i will say is in order for this to have a major impact, it has to be more than a category three when it hits land. so at this point it's going to be, it's going to be impactful, but it's not going to be dramatically impactful. i don't think prices are going to go up that much.

>> nat, gas, half of the refining operation is there for nat gas. >> you think the frackers can pick up, a lot of the shale fields are very prone to flooding, so that could be an issue as well. stuart: i've got to say again, we are a financial program, and there is a financial angle to harvey. but we're very concerned about as a human story, because there are millions and millions of people who are really up against the wall as we speak. >> yeah. stuart: and let's never, ever forget that. that's what's coming at you, texas, and it might stay there for a while. i want to talk about amazonful clearly, making their presence felt now that they own whole foods. they're lowering prices. your kale bill is going down. all right, jeff, does this make you -- [laughter] does this make you bearish on the other grocers? >> i can't believe you're excited about lower kale prices but, you know, that's great. i would say as far as the grocers are concerned, they have

to be quaking in their boots right now. amazon, right now, the only area of grocery, the only area that they've actually made profits has been in the organic area. now those margins were still significant. now amazon is coming in, lowering their prices, undercutting a lot of the grocers. they have to make a decision whether they're going to try to keep up or they're going to just fold and stick with processed foods. but amazon really right now is going to do system damage. stuart: andy puzder, it's not just the grocers that are suffering, it's the whole processed food industry. i see nestle's, campbell's soup, global companies down in price as far as their stock's concerned because fresh is on the rise, processed is taking a backseat. what do you say, andy? >> i think the decline in those major companies will be temporary. i think really it's the grocery stores that need to be concerned. they have, as jeff said, they

have razor thin margins as it is. the only place they were getting any kind of margin was in these or begannic products dub organic products, and if amazon's going to cut the price to the point where people are going to buy them more regularly from whole foods as opposed to kroger's, i'd say they do have issues. you could see it yesterday, it's a problem. stuart: yeah, you could. it's global. >> it's rumored that there's over 65 million amazon prime customers. what amazon is intending to do with whole foods is give amazon prime customers a better deal. so you're talking about 65 million plus people that are going to be buying organic foods, that are going to be getting a better deal. heir going to give up on a -- stuart: there's no such word as impactful, but moving on. [laughter] >> this story has gotten so big that even the federal reserve has said they don't know if they can move interest rates anytime

soon because inflation is going down. inflation is not going up. and you've got to wonder if the u.s. congress is going to step this and say, you know what? there's an antitrust issue here. this is how big this story is, because it's affecting interest rates in this country. >> everything amazon does is to generate more prime be membership, and this is just another example. their reach is so remarkable that they can offer these deals and, in the end, get more members. it just gets -- [inaudible conversations] >> and really -- stuart: andy, go ahead. >> really it shows how coordinated this company is. a lot of companies buy these other companies and are never able to take advantage of the synergy, but these amazon people are wonderful at it. if you're adding whole food customers to your list of amazon prime members, you're helping your entire business. >> right. >> they do a great job with. stuart: now we're up 69 points on the dow industrials, 21,852, is where we are. gary cohn, principal economic adviser to the president, explaining why he's

staying at his white house post. i have come under enormous pressure both to resign and remain in my current position. as a patriotic american, i am reluctant to leave my post because i feel a duty to fulfill my commitment to work on behalf of the american people. i also feel compelled to voice my distress over the events of the last two weeks. andy, that actually is a plug for tax reform. if he stays, that's his -- that's what he wants, tax cuts. this is a good sign for tax cuts. he's staying. >> yeah, you know, gary's a very smart guy, he's a very good guy. he's essential to getting this tax reform package done. he and mnuchin are the keys to this, and gary's not going anywhere. look, gary can do something that very, very few people can do. if he's upset with what the president says, he can tell him he's upset and find out exactly what it was the president meant. most people are seeing what the president said through the eyes of the media which is not a fair representation.

i think gary took a good position, solidified himself with his friends and people in the business community, but he's staying on. he's one of those people in the white house that wants to work for the american people. stuart: by the way, i think that tax cuts or tax reform, call it what you will, got another plug with news this morning that the president will barnstorm the country in public speeches. he starts next wednesday, and he's plugging tax cuts. i think that's another plus -- >> and elle tell you, you know -- i'll tell you, culture wars, nobody supports naziism or the kkk, nobody does that. but culture wars do not put food on the table. they don't. and if you want to hit 4% growth, you've got to get u.s. households spending. you've got to get those blue collar workers their jobs back. >> it's long overdue, this barnstorming. get out there, sell it to the people. put even more pressure on people in congress that need to get going. stuart: i hope he gives a speech

at 9:00 in the morning. [laughter] look at that big board, high of the day, i do declare. we're up 76 points, 21,859. the s&p 500 is also up about the same amount, .3%. as for the nasdaq, again, i think that's a better gain than the s&p and the dow. yes, it's up -- about the same, about a third of 1%. sales growth slowing at ulta salon, so that puts them down 8%. gamestop profit fell short, so that thing is down too, 10% down there. then we've got apple, reportedly planning to unveil an upgraded apple tv settop box. it can stream 4k video and highlight live tv content. i don't know what this is all about, i don't want you to explain it, but -- [laughter] this is added to the new iphone -- >> again, apple rolling out new versions of old products. what people have to understand is that, first of all, they want to get into the content business.

i said on your show a few years ago that they should have bought netflix. now they're going into the streaming business and a technology that is a little better than hd but not quite, not quite -- stuart: before we go any further, this is a settop box. >> right. stuart: put it on the top of my tv set, and i plug it in. what do i get? >> double the resolution of your -- stuart: who cares? what else do i get? [inaudible conversations] >> here's the problem -- stuart: i don't want to hear the problem, i want to hear andy tell me what i get apart from better resolution. >> you really don't get a lot. stuart: oh, there you go. >> they're trying to compete with roku, and you have to have a television that can actually reflect a 4k picture -- >> netflix, hulu finish. >> it doesn't matter, verizon is throttling everything and slowing down the speed. you have got to watch that story. stuart: i'm told you get all the content, you get netflix, hulu -- >> amazon prime.

>> you get 'em now. stuart: you get fox business -- well, now you're talking. >> now you're excited. stuart: come on. it's friday morning. we're ten minutes in. i have to say regretfully i've got to say good-bye to jeff sica. impactful, forget about it. also thank you very much, indeed, andy puzder, this friday morning. another amazon story, lazy boy in talks to sell its furniture on amazon. if you can't beat 'em, better join 'em. all right. our coverage of hurricane harvey continues, obvious. the storm will make landfall on texas, i think about 1:00 in the morning saturday, one a.m. saturday. >> correct. stuart: hive report from our resident meteorologist, janice dean, coming up. she says harvey has the potential to be one of the most impactful storms ever. [laughter] we'll be back. ♪ ♪

stuart: yeah, it's a rally, 73 points higher, 31,857. -- 21,857. and now this, millennials are loving snap more than instagram which is owned by, i believe, facebook. >> yes. stuart: what is going on, gerri willis? these millennials? [laughter] >> hey there, stuart. that's right, snapchat's third most popular app among 18 to 24-year-olds. take a look at the list, number two facebook, number three snapchat, number five instagram. let me tell you, it's a pretty exciting list. still not helping the stock price, right? we're still down from all-time highs of 24. doing better today but still struggling. e-marketer predicted earlier this week that snapchat would be bigger than facebook and

instagram by the end of year among 12-24-year-olds so gaining some real traction here. good news for snapchat, still waiting for that big pop in the stock. back to you. stuart: i'm totally out of that demographic, gerri. thank you very much, indeed. [laughter] >> you're welcome. stuart: hurricane harvey, i want to bring in fox news meteorologist janice dean. i saw you with a weather map of the rain earlier today, and i saw 40 inches of rain on the south coast there of texas. is that accurate? >> it could be accurate. this is one of our reliable forecast models, the european model, and we are seeing upwards of 35 inches of rain, in some cases 40 inches of rain. it really depends on the exact track of the storm, the intensity, how long it stays offshore. but the one thing we can tell you is all indications are this will be an historic event along the texas coast and louisiana, and you can see this storm is very intact. it's actually strengthening, very well-defined eye, really nice outflow, and we can see

those outer bands already moving across land. we're just hours away from landfall overnight tonight across the texas coast, we think corpus christi, north is the bull's eye for landfall. but the impacts of this some are going to be felt way beyond the landfall. we're going to be feeling them well into next week. the legacy of this storm, stuart, will be the flooding. and look at the computer models showing the storm lingering along the coast, maybe coming off the coast and making a second landfall tuesday and wednesday perhaps as a hurricane. stuart: well, you've guided us through this so far, janice, and we appreciate it. and our viewers are facing a terrible situation. it's a human story. thank you, janice dean. thank you very much. >> absolutely. stuart: totally different subject, there is some speculation that nordstrom may be the next retailer which amazon and walmart fight over. really? joining us now, the man who coined the expression retail ice age, burt flickinger. this is speculation, nordstrom

for sale, amazon and walmart are interested? i don't believe it. do you? stuart: in a word, no. amazon would have bought nordstrom a long time ago -- stuart: wait a minute, amazon and nordstrom are in seattle -- >> yes. stuart and that gives rise to the speculation? >> yes. they would have bought nordstrom before they made the huge mistake of invading canada, losing money there, opening a very expensive store in new york which'll be a big loser, and they've made a lot of mistakes between amazon.com and in-store. bad time to be buying nordstrom now. stuart: got it. lazy boy, they're going to sell their recliner right there on amazon. that's a complete shift. i mean, they're joining the online guys, aren't they? >> they are, and they need to because there's not enough foot traffic in the shopping malls, in the stores and their own site, so this is a brilliant move -- stuart: are there actually stores? >> they have showrooms.

stuart: i didn't know that. i've never seen one. >> well, there are very few, and that's why the amazon move is such a smart, strategic move. stuart: so a lot of name brands will not stop, but they will now sell their product on amazon, because that's where the market is. >> and as you reported well for so long, sears is trying to save itself doing the same thing, selling its kenmore and craft cansman -- stuart: that's right. that's where you're going to get sales. hurricane stocks, you got some retail winners in that group. tell us. >> people are watching fox's janice dean across the country, what they may not see it's a human story, and the humans need to get batteries, bread, water, flashlights, all the essentials. and there are only a few stores that have them, the kroger stores, the albertson/safeway stores, the walmarts, the common denominator is they own all their own inventory, their own trucking fleets. instead of sending one truck of

product per day, per store they're sending 5-15. stuart: you know that for a fact? >> know that for a fact. they have their own meteorologists and want to be as good as janice dean with fox, and we know for a fact that cornell, where i teach, just institutionally inexcusable out of stocks for back to school, so target can't handle back to school. target's a big loser as is whole foods which has a byzantine outsourced distribution network and a huge nightmare for amazon that can't deliver, and whole foods can't handle the normal volume. their stores are so poorly designed, they put taverns in the stores, so they're saloon keepers. at the same time, it's worrying mothers and caregivers. so -- stuart: well -- [laughter] >> winners, winco, costco, kroger, albertson's, safeway and walmart, the big winner. stuart: the equal opportunity

insulter -- [laughter] burt, thank you very much, indeed, sir. good stuff, thank you. check the dow 30, give you a sense of the overall market. there's plenty of green out there this morning. in fact, there's 9 stocks in -- 29 stocks in the green. only one, boeing of all people, on downside this morning. it's a rally. google taking on depression. search for something depression-related, a box on google pops up asking if you are depressed. links you to an online questionnaire that you can use to self-diagnose. what will doctors think about that? i don't think they'll like it. >> no. stuart: but doc siegel will join us in a moment. don't let dust and allergens get between you and life's beautiful moments. flonase outperforms the #1 non-drowsy allergy pill. it helps block 6 key inflammatory substances that cause symptoms. pills block one and 6 is greater than 1. flonase changes everything.

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stuart: did you know this? gold beating the s&p 500 this year in terms of rate of increase in the price. i think that's got something to do with the flight to safety. safe haven investment in times of north korea. maybe. google rolls out a tool to help diagnose depression. dr. marc siegel is with us. give me 20 seconds on how it works. >> it's together with the national alliance on mental illness. they got together with google . you're searching depression or depressed on google, something will pop up, are you depressed? if you answer yes, you get a

questionnaire called the phq-9. are you sleeping? are you worried? are you feeling happiness in your life? are you feeling like you're a failure? can you concentrate when you read the newspaper? can you concentrate when you watch tv? it should say can you concentrate when you're watching "varney & company" -- [laughter] because that's the real test. if you fail those things, it's going to be information you can bring to the your doctor. stuart: okay. >> half the people who are depressed in the united states don't even know it and aren't doing anything about it, so it's an awareness raiser. stuart: but it's self-diagnosis -- >> and it's cookie cutter, which i don't like are. when i actually treat people for depression, it can take forms. i also, stuart, don't like the invasion of privacy idea. what's going to happen with this information? where's it going to end up? i don't want to sound paranoid, but once you say online i'm depressed, i have problem, that problem, who's going to end up with that info? stuart: fair point. >> i would probably leave it at are you depressed, and if you answer yes, maybe some

information on where to go. because doctors are the ones who can really help you. stuart: you guys -- doctors -- you hate self-diagnosis, don't you? you hate patients walking into your clinic and saying i've been looking this up on the internet, and i think i've got this, this and this. >> i really don't like it, and it is what everybody's doing these days. and we pend half the -- spend half the visit going through it and trying to tell the truth, you know? well, okay, you think you have this, but that's a red herring. i reassure people who make self-diagnoses on google all the time. but i will say that i like the idea of people coming to my attention who wouldn't have otherwise otherwise done it. stuart: fair point. >> that i like. stuart: doc siegel -- >> watch "varney & company." [laughter] stuart: watch this, we're up 100 points less than a half hour in. president trump getting ready to barnstorm on tax cuts. i've been calling for this for a month, and we are on the story. plus, amazon affecting

grocery stores, foodmakers, even lazy boy. all of that, and we're tracking the hurricane. hour two is three minutes away.

. .

stuart: now we know what janet yellen is going to say about the economy and interest rates and now we've just been allowed to release it. adam shapiro, what are the highlights from janet yellen's speech, please? >> the key here is a dramatic speech that appears to be a message to president trump and the administration that janet yellen does not want to change federal reserve policies or regulations. she imposes the questions if reforms have gotten too far to support productivity risk taking economic growth. she answers the question the balance of research suggest the core reform we have put in place have substantially boosted resilience without credit availability or economic growth and here is a key quote that reinforces what the chair is saying, our more resilient financial system is better

prepared to on sombrather than amplify as illustrated during periods of market turbulence in recent years. she goes onto say that there may be benefits to simplifying aspects of the rule which limits proprietary trading by banking firms and reviewing the interaction of the enhanced ratio with risk-base capital requirements and say that is credit appears available although indicators point to difficulties facing with weak credit scores and insufficient credit history and finally she say that is credit may be less available to some borrowers specially home buyers with less than perfect credit histories and small businesses. if you're looking for two key messages out of the speech, repeat answer to her question have reforms gone too far, she says the balance of research suggest that the core reforms we have put in place have substantially boosted resilience without undually limiting credit availability or economic growth.

no hint of rate increase or hint of when the unwinding of the balance sheet might be. what appears to be a speech to lawmakers and possibly president trump that if you're going to reappointment me, don't expect me if i accept reappointment to change the regulatory structure at the federal reserve. stuart: adam, thanks very much, indeed. we have been watching the market as the news broke, the market went up, not a lot but little bit more, up 118 points. reforms worked. we are going to absorb shocks, up goes the market, 29.09. ashley: turned positive. liz: for august. stuart: we are determined to make healthy and organic food

available to everyone. why? because here is the chief executive of amazon worldwide consumer and announcing price cuts of whole foods, the chain that amazon just bought, kale got a little cheaper and so did the stock price of retailers who face a price war, kroger's, cosco wholesale it is, wal-mart, that is the amazon effect. that's today's prices, they went down yesterday, got it. in the food industry, amazon is amplifying a trend that's already in place. the shift towards fresh and away from process. as amazon drops the price of kale, i'm joking now, investors dropped the stock of the most famous food brands in the world. nonetheless, that's chips ahoy, trident gum went down, ready whip, tang, remember that, down.

kellogg's down, nestle, kick kat bars, down. peanut burt -- butter. down. just about anyone in the world is dominated by the processed food giants and they're all feeling amazon's heat. imagine that. one american company buys one fresh food chain so when jeff speaks, the world listens and nobody wants to hear that jeff is next. the second hour of varney & company is about to begin. ♪ ♪ ♪ stuart: gary cohn drafted a resignation letter. ashley: colleague from john

roberts at fox news. when mr. cohn as you can see standing awkwardly in press conference in lobby of trump tower, he met with the president last friday and reports said that he had written a resignation letter, what we don't know if he handed it in, if he did it certainly wasn't accepted. we were also told that the interview where he went off on the trump administration, they bungled the reaction to the charlottesville violence, they knew that ahead of time and perhaps the belief that they were going to allow to vent a little in exchange for him staying in his position. he said, himself, gary cohn he was under tremendous pressure after charlottesville to quit. stuart: drafted the -- ashley: we do know he's still in the administration. stuart: he's still there. perfect person to comment on this is jay con chaffetz, former utah congressman, fox news contributor. >> thank you.

stuart: that story, he drafted a resignation letter, that tells you the divide in the white house and the chaos in the white house, does it not? >> well, i think the president is well served by having people around him who have a diversified opinions. i don't think people should be afraid to -- to express those opinions. it's interesting that it wasn't accepted. gary cohn is talented and smart person and has great trust from the trump administration. he's been present, you would see him more than anybody else on capitol hill. stuart: if he resigned, if he actually did step out of the white house, down goes any idea of tax cuts because he was point man. that was his deal. >> he is the epicenter of tax reform and i think that would be a myth, where i can understand friends and colleagues people hi know or family were giving him pressure, that's okay, that's what we do in the country. people shouldn't be afraid of that.

stuart: you're also the perfect person to comment on the divorce and the fight between president trump and the gop congress. we've got the president tweeting again this morning. if senate republicans don't get rid of the filibuster rule and go to 51 majority, few bills will be passed, 8 dems control the senate, he's going after republicans, he's got jeff flake toxic, he saided lindsey graham is a publicity-seeking guy. >> bob corker. stuart: it's a fight. i think the president wins. >> the president does win. he's a populist. he's widely viewed as somebody who better relates to the american people. and the president is right on the rule, by the way in the senate, this is not something that it's edged in stone, this is just a senate rule that gets in the way because there is always a procedural vote to proceed. that's what slows things down and you do need to get to 60

votes. stuart: he can't say forget filibuster, end it, it has to be the leader of the republican -- >> he can advocate for it. as you and i talked several times, he needs to bard storm the country. win the argument and then go get the votes. now that the president is going to go out and go to missouri and go talk about tax reform, it's kind of late. at least he's starting to do that now and puts pressure. stuart: i feel the momentum is building here. barn storming the country. he's basically saying, get it done. if you don't get it done, it's your fault and if you do get it done, you did it because of me. >> that's the brilliance of the constitution. i'm sure they envisioned twitter. stuart:

everybody was really surprised. [laughter] stuart: welcome to fox, welcome to television news. >> thank you. stuart: you did all right. congressman, thank you very much, indeed, sir. check the big board. well up, over is 00 points higher, janet yellen just made -- set out to make a speech, we know what they are saying, financial reform works, question absorb shocks, progress towards price development, up goes the market, investors love the news. 21,0892, home depot, lowe's in much demand because harvey is coming. refinery stocks. now there are fiver refineries in corpus christi texas which will get hit by harvey, refinery stocks are up at this moment. that may be because the price of gasoline expected to rise, maybe 20 cents in the wake of harvey, that, i think, is financial news

from the hurricane watch. how about ulta, i'm not familiar with it myself but it is way down. sales growth has slowed and it's down 9%. that's $21 lower. we are going to show you a graphic showing the impact of the storm surge from hurricanes like harvey. joining -- you see that, that's the storm surge what we are looking at there. the surge of the sea as it's whipped into the coastline by the wind. again, we are looking at 41 or 42-inches of rain on the gulf coast. >> nine of ten deaths come from storm surge and flooding. please be careful. stuart: absolutely. let's get to -- from galveston, texas. tell us what you see, casey.

>> not officially to make landfall in the texas coast until sometime tonight, overnight hours, early morning hours but look out there live, you can see already the high surf, the rising water and, in fact, the national weather service says dangerous rift current. we can confirm all of that and we are 12-plus hours away from this thing making landfall which is going to happen south of us, down near corpus christi, just a little north of there which also happens to be a little south of where we are here in galveston. now, evacuations have been ordered for seven of the texas coastal counties, some of them are mandatory, some are voluntary but also always the storms like this, we see another a number of people who do not listen to that and say they are going to stay in their homes and

they are going to protect what they can and ride it out. then there are others who are really taking this seriously and we have seen extremely long lines at gas stations, people trying to fill up not only their vehicles but also tanks for their generators in case this is a widespread power event and this area is without power for some time, stuart, the biggest fear and the biggest worry with harvey is that it is intensifying and the national hurricane center says it's expecting to intensify up until the moment it makes landfall and could be capable of producing rain, more than 3 feet in some isolated areas and it is supposed to sit over us for days, so a lot of people very concerned about a number of different things that we are facing down here. stuart: yes, indeed. casey, thank you very much, indeed. i want to return to this story, we saw the map on our screens,

janice dean, our own meteorologist taking about maybe 40, 41-inches of rain. ashley: the storm surge where the bulls eye is, 6 to 12 feet, can you imagine a 12-foot wall of water. that water is going to go a long way inland, put on top of that up to 40-inches of rain. 25-inches plus from now. up to 40-inches. stuart: employees get rid of that. we have seen weather maps produced on janice dean on the program earlier which showed 41-inches of rain possible on the coastal strip and when you get inland, if this thing harbors, you're looking at 30, 35-inches of rain. ashley: houston could have 30-inches of rain. major city with 30-inches of rain. >> we have covered this before, the force of the water is powerful. also what comes in the water is dangerous too. you have to talk about

alligators, you have to talk about snakes, this is an issue and also, infectious diseases as well. that's a problem when there's search and flooding. stuart: i want to brief you show you the stock market. let's not ignore that. a rally on our hands, the dow industrials is up, we like it, by the way, up 116 points, 21,900. you think about that, that means we are, what, 200 points away from the all-time record high closing of the dow jones industrial average. it's straight up today. that's because -- you see along the bottom there, stocks up on yellen's speech, she's in wyoming, huge global meeting of bankers, central bankers and she's saying, reform, financial reform worked, our system can absorb shocks and we have progress towards price stability.

ashley: no mention of a rate hike at least not yet. >> endures bank reform, scaling back dodd-frank and proprietary trading. stuart: yes, the market taking that very well, thank you very much, indeed. so this is -- that's the financial story of the day is the rally on wall street. the weather story of the day is quite clearly harvey and i think it's going to be the story all the way through the beginning of next week. there you go. totally switching gears for you now. berkeley, california, bracing for a possible violence over this weekend, leftist group says it plans to oppose and antimarxist march for sunday. the marxist want the march and the antimarxis, the, i think identify -- >> you were an intern, the wall street journal? >> at the wall street journal.

>> the greatest newspaper guy of his generation. i knew him well. >> really? stuart: he was my mentor, absolutely he was. remarkable man. >> enjoyed it. stuart: what do you think the left a countermarch, a countermarch? >> everybody has the right to say what they want to say. it's important that we think about how do we have safeguards against violence while also protecting liberty of expression, t important to point out that a lot of people are characterizing this march against marxism something to be for hate groups, she wants nothing to do with that. stuart: good. >> she embracing diversity and people need to pay attention that this isn't about -- i don't think it's going to be the same in charlottesville.

stuart: university professor under fire for a facebook post, in it he wrote, i'm quoting, all trump supporters and all republicans are racist scum. now, that's clemp sen university professor saying that i guess on facebook posting there, what do you make of this? >> the person has a right to say something? stuart: sure. >> overgeneralization and it's not true. stuart: it doesn't do the left any good. stuart: guilty by association. that's what it is. you are first and foremost free speech. you have the right to say it, say it. >> yes, you have the right to say it.

stuart: you hold firm to that? >> i believe it's important for administrations to think about what are the measure that is they can take to protect public safety, what are the measures that need to be taken to ensure that discourse is productive and fruitful as it can be. stuart: what do you say to those people that say, i'm sensitive, i don't like what you're saying, you offended me, you have belittled me, you have done all kinds of nasty things to me and i object, i don't think you should be allowed to say that, what would you say to them? >> once you graduate, once you go into the real world, no matter what field, whether it's business, education, politics, you will encounter people that you disagree with. and that's what college is about, preparing people to articulate those agreements that they have. i've had fallouts, i've lost some friends over the things that i've said and pushed for, it's important for students to

figure how to work that out themselves. if we can't articulate the disagreements that we have, what do we have ultimately. communication is very important and vital for political discourse. >> there's a role for you in television news, do you want it? >> you know, i will definitely consider it. [laughter] stuart: have a great weekend. we are up 118 points just above 21,900. amazon-whole foods merger official monday. amazon lowering prices at the grocery store. amazon is up but not much, whole foods is up but not much up to about 42 but the story of the day is the amazon effect. and this, new study showed smokers are quitting because of taxes on cigarettes. >> liberals and government love taxes happy. directly from university, heavy

smokers around age 58, one in five quit smokeing when taxes went up a buck. heavy smokers are smoking half a pack a day, they quit, one in five quit. the real heavy smokers cut smoking by a third. stuart: 10 bucks a pack, roughly that or more and smoking driven out of doors, the proportionate of adults who smoke went from 22%, been on that level for years to well under 20%. that's what happened. i support that. >> the ban on smoking in bars and restaurants. they said it had no impact. tax hike effect the smoking. stuart: that didn't affect it. ashley: did you use to smoke? stuart: in my teens.

ashley: one extra dollar wouldn't have put them off. [laughter] stuart: connor mcgregor and mayweather will be fighting for tomorrow, hundreds of millions of dollars are at stake in that fight, we will take you inside the what are enna vegas momentarily don't let dust and allergens get between you and life's beautiful moments. flonase outperforms the #1 non-drowsy allergy pill. it helps block 6 key inflammatory substances that cause symptoms. pills block one and 6 is greater than 1.

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stuart: there we go. triple-digit gains. investors like what janet yellen has to say. we can absorb and shocks towards price stability. in a nutshell that's what she said. facebook down, everything else is up. amazon, apple on the upside. it's friday morning. back to hurricane harvey. it's now a category 2 storm, janice dean is with us, update the whole situation, please, janice. janice: new advisory coming at 11:00 o'clock, be watching for that. the storm is strengthening, we

are seeing a strengthening storm and that's why the hurricane center is saying it's going to be a major hurricane when it makes landfall overnight tonight and saturday morning as potentially 120-miles-per-hour sustained winds. a wall of water on top of dry land anywhere from 9 to 12 feet depending on where you, that will inundate some areas. some cases over 3 feet in a matter of days, so we are talking about a year's worth of rainfall in just a matter of a couple of days. that's how big this storm and the legacy that we are going to be left with. so computer models are in good agreement over the next says 2 to 18 hours making landfall somewhere in corpus christi, the core around corpus christi, 120-mile-miles-per-hour winds.

look at what happens after that, we are expecting the potential for the storm to move into the gulf of mexico yet again, maybe strengthen back to a hurricane and maybe a second landfall, look at this. this is wednesday, we are still talking about the potential making an impact. the steering right now very weak steering, this is what guides the storm, typically what some of the landfalling hurricanes, we have something to punish it out of the way. we have high pressure across the rockies, another high pressure across the southeast and they are battling it out, this is going to overtake harvey and push it back towards the gulf of mexico, so this is something unprecedented, something we have never seen in hurricane history, a storm like this last till wednesday, perhaps still as a hurricane. stuart: extraordinary stuff, janice on top of it, thank you very much, janice dean. attorney general from the great state of texas, i really want to

ask you about forced evacuations, mandatory evacuations, can you actually force people out, can you go grab them and say, this is unsafe, you're out, come to me, can you do that? >> well, i think it's been done before when law enforcement feel like these people are at severe risk,ic they grab them and pull them out. stuart: you do have mandatory evacuations and you have warnings depending on the county that you're talking about. >> i think people are leaving, i don't think we have any mandatory evacuations yet. that could possibly come soon, certainly we are encouraging people to get as far away from the coast as you can. stuart: can you be sued, could you be sued if you issue a warning, people stay, they get hurt, they sue you because it

wasn't a severe enough warning. i know this is american, you can sue anybody any time you like, is that a possibility? >> in america you can sue for anything. i don't think that would be a successful lawsuit in texas. stuart: yeah, in texas. [laughter] stuart: different subject. federal judge has thrown out your rewritten voter id law. the second time it's happened. you're obviously going to fight this, you're going to win? >> i think absolutely, this is a judge, obama judge that's doing legislative than actually interpreting the law. the fifth circuit gave outlines for changing legislature and so here we are, the judge said it doesn't matter, what's interesting about the judge is when you go into the courtroom, guess what you have to show, you to show photo id and for some reason that's okay but in voting it's discriminatory, that's very

strange. stuart: you take this to a higher level when you appeal this, that's what you're doing? >> yes, we've let the court know we are going to appeal with the fifth circuit and that was the court that gave us the guidelines for changing voter id last time and we followed those guidelines exactly and so we expect to be successful. stuart: do you think the judge explained why for the second time the judge threw out the idea of needing voter id. >> her idea is we can't fix what we already did. the fifth circuit had a different view. they believe we could fix what we have done. it's an odd opinion, i don't think it's correct and i don't think it'll be overturn. she did not think that we could fix discrimgnattory intent despite the fact that we followed what the fifth circuit intent. she's ignoring our legislative intent and what the people of texas want. stuart: people say this is voter suppression, the suppression of minority voting, what do you say to that?

>> you know, i was in the legislation when we passed in 2011, i can tell you that's not the discussion, it was the discussion among any legislators, this is about preventing fraud, we know that we have fraud in texas and this was a way to prevent it. if you think about how photo id is used in our society whether you go to airport, whether you go to hotel, go to wherever you go, you need photo id for financial transaction, why in this very important realm it's certainly treated as if it's discrimination when in so many other places it's accepted. stuart staurts attorney general, you harvey baring down on you, you have a lot of work, we won't keep you, thank you for being with us. >> encouraging texans to be safe. stuart: yes, sir, i should do that. defacto leader of samsung, the giant conglomerate, samsung, that man sentenced to five years in prison for his role in the corruption scandal, this is the same scandal that brought down

south korea's previous president. joining us now embassador john bolton, former embassador of the united nations, mr. embassador, this comes in the middle of the standoff between north and south korea, america and china, does this whole thing effect that international incident? >> well, i think it's having effect on politics in south korea and so certainly it could have an effect on the larger strategic picture specifically the bribery that this billionaire was convicted of involved the president herself and bribes to her sort of strange adviser that led to the president the president being impeached and forced from office . you are seeing and it's far from over. stuart: if there are candidates for presidency, former president is out, they'll be a new one

coming in, is it clear what their policy, how they differ, whether they are more proamerica or more prochina, how does that work out? >> well, the new president who succeeded president moon, back to sunshine policies of kim jong un, about 15 years ago, those proof very difficult for the united states, there's this naive most polite way to describe view that north korea is not threatening. i think president moon as some people sometimes write about washington is growing in office and hearing from president trump and u.s. military officials, he's accepted thaad antimissile systems, but nonetheless, his view of north korea as somebody you can negotiate with apparently he's persuaded secretary of state tillerson so i'm very much afraid we are back where we were a year and a half ago in the obama administration.

stuart: oh, dear. i have this one for you, mr. embassador, i'm sure you know this and i'm coming right after with this, the mayor of venice potential warning of terrorists, sniebers will shoot anyone who shouts allahu akbar, your reaction to that, sir? >> that's over the top. europe, at least political leaders in europe are beginning to sense that the terrorist threat is going to have impact on them. not only old citizens but in a city like venice, barcelona, heavily dependent on tourism, there's going to to be economic impact. stuart: extraordinary, thank you very much for joining us, sir. yes, sir.

in our next hour the google employee fired for writing that diversity memo has hired a lawyer and seeking out others who have been discriminated against for their political view, a class action lawsuit to silicon valley not too far away? first, hillary clinton calls president trump a creep and talking about second debate, next one of the authors of that book details hillary's failed campaign. we are all over it.

78% of americans live paycheck to paycheck. puzder says that's why a tax cut is so important for the economy. roll tape. >> just like you're running a business, if you can reduce your costs, you're better able to make a profit and break even. stuart: they don't pay federal tax? >> if you're not paying tax, it's not going to give you a benefit. what those people need is reduction in health care costs. we have huge health insurance premiums and huge deductibles so we need a reduction there and we

need to train these people for better jobs, so they can increase income. 25,000 construction jobs, 388,000 manufacturing jobs that people can't fill because they don't have employees with the training, so we need to train people, and educate people

stuart: they are a designed automaker, profits were very solid, up 5%. let's get to hillary clinton, shall we?

her new book coming out next month. in it she launches a full-on personal attack against president trump. listen to the excerpt read by ms. clinton herself. >> no matter where i walked, he followed me closely stairs at me, making faces, it was incredibly uncomfortable. he was literally breathing down my neck, my skin crawled. stuart: shortly thereafter she calls him a creep. we are joined by jonathan, coauthor of the book chattered. jonathan, i read your book, took me 3 to 4 hours, i read the whole thing and i distinctly remember reading about the debate where you're talking about an aide that stood in practice session, aide stood in for trump and he got in hillary's face, tried to rattled her, wasn't she prepared for the second debate? >> great memory you've got and thanks for reading the book.

yeah, absolutely, her aides whole idea was that he was going to get in her physical space so that she was accustomed to that and she wouldn't be focused on donald trump if he tried to wandered into her area. something that she was completely prepared for and honestly, she had known that donald trump was looming over her shoulder so closely metaphorically in the election, she might have done more to try to win at the end. stuart: do you think she's hurting the party, the book and excuses, does it hurt democrats? >> certainly democrats that i talked think that it couldn't have come out in a worst time for them. they are trying to move on, find new leaders and here is hillary clinton is talking about what happened in 2016 and given target to president trump, he likes to have opponent and somebody that's going to give him a hard time, he certainly will fly back at her.

stuart: your book wasn't heavily critical of hillary. i thought it was imbalanced job that you did quite frankly, you pointed out some of the problems in her campaign, she didn't have a theme, she didn't really have a message, she had to ask her aides, what should i say, that's a pretty damming criticism. what was the response of the clinton camp to your book, do you know? >> well, there were two responses, one was the public response where they said that there were, they sort of broad slice at the book, privately, we heard that they -- most of the people felt like we hit it on the head. some of the people had criticism of the campaign but also i hope that you're right and that this was done in a balance way and brought out the weaknesses in hillary clinton which show humanity that in a way she has difficulty doing herself on the campaign trail. all that said, this was a candidate that put herself in a position to lose the presidency and made a lot of mistakes along

the trail and my coauthor detailed that. all of that's layed out in the book. >> did you and your coauthor, were you interviewing then people on the campaign during the campaign itself or did you interview after the campaign? i ask because if you were right in the middle of it asking questions, i witness -- wonder if you were ever tempted to offer some advice? >> we did ask questions before it officially started all the way through election day and then after the election obviously asked people to talk about in retrospect. never tempted to give advice. it's a foolish reporter that thinks political adviser occasionally entertain and -- and it's a fool's. stuart: i would love to see a book about us. if you're looking for a subject

and i'm sure you're not, if you're looking for one, come and look at us. >> thanks, a lot o. [laughter] stuart: it was a pleasure having you on. take care. >> thank you. stuart: a father in britain has created an app. it freezes your child's phone until they answer your text. i want one, ash. ashley: six, how many kids? stuart: nine grandchildren. ashley: he got fed up with texting his teenage sons, where are you, what are you up to and the kids out playing video games, put it is fun on silent and everyone can speak to that teenage, gets asap message and shuts down. the app takes over. and sets off an alarm on the teenager's phone even if they set it to silent. it literally takes it over until they read and respond.

that could be dangerous territory. >> your wife. [laughter] >> yes, i said it. stuart: stay out of this. start of the barn storming campaign, sell tax cuts to the american people, the news that he's starting a barn storm tour is helping the market this morning. more on that coming up don't let dust and allergens get between you and life's beautiful moments. flonase outperforms the #1 non-drowsy allergy pill. it helps block 6 key inflammatory substances that cause symptoms. pills block one

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>> there are groups that have for years now equated all opposition to jihad terror can hatred, bigotry and slam -- i lam -- har left agenda. stuart: i share that opinion. robert on the show yesterday, his group was kicked off paypal

because left-wing groups called it a hate site. it has been restored but a lot of you are fired up about appearance. i'm going to close my paypal accounts, we have to make a point with big elite companies. i'm with you. penny says i'm glad that paypal has seen the light, just because one group is bad, doesn't mean they are all. >> sorry, i didn't know that tracking jihadi's was a right or left issue. stuart: they defined this group as being showing extreme hostility to muslims. >> okay, well -- ashley: they are looking for muslims that are planning attacks. those that are become extreme that want to do harm to us and those that don't believe. it's funny, my wife when i get

home, that was one issue where she was like i cannot believe that they tried to shut down a site that's trying to protect the country. outrageous. stuart: conservative opinion is labeled hate. >> that is is such lazy thinking. stuart: danger for whole country. we are based on free speech. if you don't have that freedom, you have a problem. ashley: exactly. stuart: let's get it back. okay. [laughter] parodontax, the toothpaste that helps prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey to much worse. help stop the journey of gum disease. try parodontax toothpaste. ♪

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sfx: road noise sfx: tires screeching sfx: horn honking daughter: daddy! we don't say words like that! ♪just let your love flow ♪like a mountain stream ♪and let your love grow stuart: the president is pounding his own party. seems like war, the president is definitely on the attack. he says jeff flake is toxic.

south carolina's lindsey graham, a publicity seeker. mitch mcconnell failed on health care. a long list of provocative and sharp edged attacks. he is demanding action from a gop congress which has achieved very little. think this through. if republicans can't get anything done the president can say you failed, you let me down. it is your fault. if the republicans do get something done the president can say you couldn't have done it without me, i will take the credit. that is how donald trump rolled and there is some evidence that voters are rolling along with him. if it is trump versus congress trump may be winning despite the media firestorm against him. just yesterday the influential cook political report, voters in four democrat senate races shifted in the gop's direction. the president will pile on

directly next wednesday, starting a barnstorming tour pushing tax cuts. over the heads of the media, over the heads of congress straight to his base in springfield, missouri and it is on from there. you have never seen anything like this before. a sitting president at war with his own party, his agenda and the future of the party at stake. the president is asking voters whose side are you on? the answer to that question will decide what gets done. get ready. the third hour of "varney and company" is about to begin. ♪ stuart: this brings back -- brings me back, way back when.

i used to dance to that. there was no video in those days. moving along, check the big board. the rally faded a little, we are up 52 but i see a lot of green on the left side of the screen. back to that editorial by delivered at the top of the hour, donald trump seems to be at war with his own party, let's bring in edward fuller, heritage foundation president and friend of the show, good to see you. i say the president is going to win because if congress does nothing he says you failed, it is your fault. if congress does something he says i did it, i take the credit, i pushed for this. he is going to win. >> he is going to win either way. there is a lot of room for praise all around town.

if we can just get people to add and multiply and not divide and subtract on major policy issues we will be better off. stuart: do you think the president would be better off if he didn't call jeff flake toxic for example, lindsey graham a publicity seeking kind of guy, should he stop doing that? >> i saw lindsey graham on your network after the afghanistan speech and there was nobody more supportive of donald trump and lindsey graham was so you have to look for the positive things, build up momentum. when you and i last talked, we talked about sonny perdue and other senators next to him talking about how to reform immigration i thought the president is getting it, he understands you got to work with people, tom cotten and people like that on the hill to get things done. there is both good and bad. part of the problem is when the whole town shuts down in august we get distracted and start talking about arguments instead of numbers. we have enough numbers to deal with in september with the

budget and the debt and appropriations and the other big items, tax reform, that is what we should be focusing on. stuart: donald trump will start what i call a barnstorming tour on tax reform starting next week, wednesday, goes to missouri and on from there. you think it helps? >> it is going to hell. claire mccaskill is one of the endangered democrats, she has that senate seat, the end of her second term. a good place to start because missouri is home to a lot of real strong trump people and i am sure senator roy blunt who is part of the leadership will be there and at his side and say we got to have real tax reform. stuart: he is building momentum, did not barnstorming the country but did make one oval office address. after he was shot, to push for tax reform. i think that helps back then.

>> it really did. at that point he had to have bipartisan majority, had to work with to bowe neil in the house because democrats control the house and senate. he had to pool everybody together. that is what donald trump is learning. if we get these going let's put the pressure on the weak spots, bring them along and try to add and multiply and not divide and subtract. stuart: it is narrowing down to tax cuts for individuals, tax cuts for corporations. that is what you want to see. >> that will be a strike not only for donald trump but all conservatives in washington and that is where we should be headed and working together. stuart: thank you, appreciate it. back to hurricane harvey, a huge story. you will see a map of the oil and gas rigs in the gulf of

mexico, production has at least some of them has been shut down. the president of oil associate, frequent guest on the program joining us in new york. >> i can't get back to later next week. the weather is going to come into houston and odds are the airlines are not going to fly. stuart: you study oil and gas prices would i want to focus on gas prices. the price of gasoline goes up 10, 15, $.20 a gallon very soon nationwide because of the shutdown of some of these refineries. is that in line with your thinking? >> we have seen the wholesale price in houston the last three days, that is just with corpus

christi area refineries that represent only 4% of the refining total. stuart: if it hits houston it gets worse? >> it can get significantly worse because in houston we have 13% of the nation's refining capacity and what we are worried about in houston is a significant flooding event that takes our equipment and if you take out the equipment it will be weeks and in some locations even months to get those refineries back up and that would cause product price spikes on gasoline and diesel fuel. stuart: it is looking bad at the moment, janice dean looking at 40 inches of rain just in that narrow strip on the gulf coast and the storm surge, that sets up a situation where houston could indeed take a nasty hit, especially to refineries. >> quite concerning. even more concerning is a number of major pipelines that deliver petroleum products from the houston area to atlanta, charlotte, to washington dc.

if those pump stations are taken out due to water or loss of power, no pipeline means no product into those markets. throughout the southeast this could be an event for them. stuart: would your advice be go out there no matter where you are and fill up the tank? >> there is plenty of supplies out there and still supplies in refining that they maintain so that if the water level comes high, the tanks don't float away like we have seen in the past. don't panic, especially in the northeast, plenty of supplies but things will get tight. stuart: you are a texas guy, you lived in houston for many years. have you seen anything like this before? >> the thing that comes closest to it was tropical storm allison which dumped 30 inches of rain in 36 hours. stuart: a significant supply of gasoline interruption?

>> there was because we had a significant amount of flooding. what you are worried about is the flooding event is results from results in power outage from local utilities and if local utilities go down refineries can't start. stuart: a viewer of galveston, live-action camera. you are not going to houston anytime soon. >> later that week. and in this hour, thank you, much more ahead. missouri rolling back it's minimum wage. low-wage workers protesting, they don't like that lose the fight for $15 an hour losing ground. derek jeter with a deal to buy the marlins, the head hunter for nfl teams, coaches, some advice.

we are following hurricane harvey, potential for devastating storm. some people are talking 40 inches of rain in some parts of texas. evacuations underway. a modest gain of 120. the market like the president barnstorming tax cuts, what janet yellen has to say, up 52 as we speak. ♪ always right there ♪ where you need to be

♪ complement ♪ fly with the caps ♪ stuart: low-wage workers in missouri protested, they do not like the fact that in missouri the minimum wage is being rolled back, was $10 an hour, is going

to $7.70 on monday. the apple metro ceo, restaurant guy who knows about the minimum wage. i'm not surprised at this, high minimum wage mean fewer jobs. >> the governor has that insight which is unusual in a political arena. they like to legislate standards of living moving up and people working. stuart: that is the moral of the story, you cannot legislate wages. the market has to take care -- >> never worked, market sets the wages so moving the wages back down keeps whoever is working working but we have seen over and over again when we can moving the minimum wage up. stuart: the move toward $15 an hour, 15 or bust, that whole campaign is shot. >> i hope so because let me give you the latest news bulletin, since seeing you in harlem which is in need of jobs, and about

100 people working on 125th street because of wages. stuart: a survey from correia, i don't believe this and i want your comment. 78% of full-time workers live paycheck to paycheck, eight out of ten, people with time job paycheck to paycheck, not sure i believe that. data too high proportion. stop it. i am not -- i didn't think eight of ten of my fellow americans worked. >> i don't know the numbers but more people are. everybody is picking their pocket. we haven't got the tax-cut we are supposed to get the taxes a reasonably high, and the discontinued obamacare, much more complicated as the president said that it was, we pick people's pockets this year

for $800 in fines if you don't take it, and several thousand dollars, where did that money come from? stuart: you think if we got tax cut and got rid of obamacare it would not between out of two living paycheck to paycheck but far less. >> i don't know what the numbers but it would be helpful, tax cuts particularly. stuart: i know you as a restaurant guy, a real estate guy, but now you are an oil guy, big-time investor in that. >> i was the director of alex dollars energy, new york stock exchange for about a decade. stuart: you know what you are talking about. the story is the oil production, actual production of oil, it was offshore in the gulf. now it has moved on sure, the trackers have taken over, horizontal drillers have taken over, does that make an impact?

>> what we were doing, i was on the phone before coming on with you, we are evacuating offshore rigs, setting down the refineries around the coast, but on land the fractures can continue to frak, we still have huge inventories. stuart: it is not an oil price story, but a gasoline refinery. >> gasoline, oil and other products off of the refinery. stuart: we had andy lipour joining us in new york, he says 15, $.20 a gallon up for gasoline nationwide communiqué go that far? >> i would not. hard to say because we don't know what the effect of the hurricane is going to be, we are evacuating now, could be a temporary spike. we didn't have in the past big hurricane, the supply for the

refineries, had to shut down in the golf. now we have the supplies so it is a matter of getting refineries backup and churning. stuart: i don't need to fill up the gas tank in my chrysler town & country van. >> not if you are living paycheck to paycheck. stuart: you got me. you are all right, thanks for joining us. the markets come back. we were up 120, you are there, you were up 120, now we are up 56, it is still a gain. we are not going to check it away. much more ahead. a full report from meteorologist janice dean on the historic flooding that could be on its way to texas. she just got an update on harvey and she will give it to us. derek jeter joining a deal to buy the miami marlins, coming up a sports head hunter who has worked decades with major-league team owners, has some advice for

mister jeter. look at this. wild baseball game in detroit, you explain the tigers, getting beans not one, not 2 but 3 bench clearing brawls. players, managers ejected from the game. don't you love it? america's sport. ♪ don't let dust and allergens get between you and life's beautiful moments. flonase outperforms the #1 non-drowsy allergy pill. it helps block 6 key inflammatory substances that cause symptoms. pills block one and 6 is greater than 1. flonase changes everything.

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stuart: hurricane harvey shaping up to be a major storm, the gulf coast could get 40 inches of rain. janice dean, give us an update. >> the latest advisory, the storm is strengthening him on track to be a category 3 this evening as it makes landfall across coastal texas. the storm is getting close to land come out a band moving toward the houston area, parts of corpus christi, not only are we dealing with storm surge, 6 to nine feet above dryland, battering waves, strong winds, tropical storm force winds stretching all the way to southeast texas but rainfall is going to be the legacy of this storm.

as we approach landfall overnight tonight into tomorrow the storm will stall out. the reason we think it will strengthen in the next 12 to 18 hours is we have a lot of warm water ahead of it and a strengthening storm before landfall is a more dangerous storm as we oppose winds at the last moment, the storm surge potentially it is the storm stalls out this is why we are dealing with epic rainfall totals of 30, even 40 inches around the galveston area, but east of victoria, texas, corpus christi, the storm is forecast to stall out for a matter of days. some of these areas will get a year's worth rainfall in just a matter of a day or two so this is devastating to your seeing words like devastating, life-threatening, crippling, catastrophic. this city can't take that much water. hurricane warnings are in effect of the storm is expected to make landfall in 12 to 18 hours.

it will be around until wednesday at the least a. stuart: foxbusiness has a lot of viewers in texas and they appreciate your presence on the foxbusiness network. >> we will be here all weekend. stuart: coming up the google employee fired for writing that diversity memo has hired a lawyer seeking out others who have been discriminated against for their political views. is a class-action lawsuit not far away? lawyers representing him up next and the market up 46 points, 21829. ♪

parodontax, the toothpaste that helps prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey to much worse. help stop the journey of gum disease. try parodontax toothpaste. ♪

my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea.

pick your favourite design. personalize it with beautiful images. and...you're done! and now business is booming. harriet, it's a double stitch not a cross stitch! build a better website - in under an hour. free to try. no credit card required. gocentral from godaddy. stuart: weight a minute. serious xm has an all beatles channel but it is a bit much. now we are playing beatles on "varney and company" and you are here too. look at the markets.

it is still a rally but not much. 34 points. it is bringing it down and we are at 45 points higher, 201h 28. a guy i had a go at not long ago pushing wakefield and just went chair. welcome back. i was having a go at you, commercial real estate rent and values have come down because of the trend toward online selling. i want to talk about that because you didn't get much out of you last time. what would tax reform, tax cuts do for commercial real estate? >> if you look at corporate rates and individual marginal rates, and very positive to the

extent corporate rates are cut, companies hire more people, additional employees philip more office space, good for real estate fundamentals. stuart: it would be an immediate boost to your profit margin. >> the question is, what are the trade-offs that would allow cuts to come, and commercial real estate is concerned about, one is what happens with depreciation schedules, talking about expensing 100% of the cost of capital investments in the first year. that would supercharge and overly juice the market, construction of new buildings that are unnecessary and we have this in the early 80s when depreciation scales were 15 years and passive loss rules were flexible, we had buildings built that were unmated and what we referred to as see-through buildings people built them, you can see right through them, nobody in them so that would not be a good thing. second thing that is very important for commercial real

estate investment sales is something called the deferred exchange where you can select property and defer capital gains tax by buying another property in six most. stuart: that is what you do with a personal home, tax on the gain by putting it in another piece of property. >> in the commercial world 70% of the folks who sell investment properties in new york city purchased another property to the further gains tax. stuart: you want that. >> to the extent that goes away that is one of the things on the table, it is called a 1031 tax deferred exchange, very important because with those exchanges you get more investment, more jobs and more liquidity. stuart: it might go away, you don't want it to go away. stuart: right now we had a setback with regard to the volume of sales, the peak of the market in 2015, activity is down

57%. if 1031 exchanges were to be eliminated it would make selling more expensive from the london school of economics, something gets more expensive, you get less of it and if you get less of it that is not good for someone who makes a living by selling. stuart: you googleed me after i had a go at you, i know you did. number 3. >> the roundhouse punch that will hurt the industry's elimination of the deductibility of business interest on the debt. commercial real estate rely on the debt and if that interest is no longer a deductible that could be negative for commercial real estate. stuart: you are all in favor of tax cut but don't want to give back on the other side. >> depends what you have to give back in order to get it. stuart: it is an equation you want to work out in your way. it was better this time i am a positive message, we like that.

let's get back to my editorial, my take, and the top of the hour, i say donald trump is at war with his own party. bring in fox news contributor david webb. we have the president going after congress and saying get it done. insulting members of congress at the same time. i think he wins because if congress does get something done the president takes the credit. if they don't get anything done he blames congress, he is going to win. >> is not only going to win but this is a president you can't blame because he's not a political on. he doesn't go in like a politician looking for risk-averse way to avoid blame or take credit. he called it as it is as he sees it, sometimes a bit in artful in the political world but you can call trump anything you want, he will win. he is right about congress. mcconnell can change the rules, the senate and change the rules, they can get close to the constitution, the president going out on the trail going out

against do nothing establishment in the senate the won't the job done. stuart: out there in public. hold on for a second. a microphone, i want to know, do you support, he is a real estate developer, donald trump, you like him? >> it is a hot potato question. stuart: you like him? >> some of the changes have not been pro-real estate. we will see how it comes out. how's that for avoiding of a question? >> you have a politician in the room. stuart: democrat as well? don't answer. >> registered independent. stuart: thank you, seriously. david, the president is going out barnstorming, he starts next week, selling tax cuts big time over the heads of congress, over the heads of the media. >> what have successful presidents done? what did ronald reagan do? they go to the people, you the bully pulpit, bornstein across the nation.

what i would ask the president to do is not step on his own story as he is doing this. when you are talking tax reform talk about policy, bring up the ideas behind the easy pieces initiative that we can have a lowered rate, double deductions, capital purchase expenditures right away, we can give repatriation tax rate to 10%, or go out and talk about what we do for business and individuals in their personal tax, stay on that message because it doesn't matter what are you are from, you are paying taxes, filing taxes are looking for a way to avoid taxes. that matters to the american people and the american economy where consumer-based or capitalist economy people need more money to invest in the capital purchase in the nation. stuart: he has the bully pulpit and he will use it. last week we had james the more on the show, the google employee was fired for writing that diverse city memo. he has a lawyer, she is going to join us. honey dylan is with us now.

welcome to the program. just got to get you on camera. looks to me like there's a much broader lawsuit coming, you are looking for people who complain about google's diversity and its hiring practices. i suspect there is a class-action lawsuit coming. am i right? >> we are just gathering information but the phone is ringing off the hook in my office and i have two associate answering a number of calls for people with horror stories about political indoctrination and political correctness google. stuart: what you are hearing from people who had their conservative views censored with google, is that accurate? >> not just centered but sometimes one strike and you are out. people are humiliated, people blocked from internal promotion and called nazis and blacklisted at times beyond the companies in silicon valley. stuart: that is a horror story. i did not know it was that bad

but that characterizes google, inherently liberal and restrictive place to work. >> absolutely and maybe it is because of the market power, i don't know why but they developed a culture which my client called a monoculture over many years to the point that it is almost like george orwell's animal farm. all the concept of diversity have been reduced to one sentence which is four legs good, two legs bad and that is the a shout you out if you have any of you that diverges from that orthodoxy. stuart: is it broader than google? is this the whole of silicon valley you are taking on? >> the first claim, first case is against google but people from other tech companies are calling our firm, we are taking notes and i suspect this is broader than google. stuart: please keep us up to speed on this, very interesting story and i want to hear more.

thanks for joining us. i'm interrupting for breaking news, donald trump is just signing now an executive order imposing new financial sanctions on venezuela. >> he went to the heart of the mindoro regime slamming their state financing, it is a new executive order, new sanctions on any dealings in the debt or equity, this is the lifeblood of the regime. he is also going after further condemning the regime and is trying to deny the regime a critical source of its financing, the oil sector. this is what the venezuelan people who have been oppressed, telling us they have been looking for and waiting for, how you shutdown a socialist dictatorship. >> similarity to the approach with the castro regime and all these regimes, take away the money and cut the government out of it and get people back in.

>> it goes after shutdown operations like goldman sachs which was dealing in venezuelan bonds. stuart: that is another part of the story. still had much more, donald trump's top economic advisor gary cohen had a letter of resignation ready but he made the decision to stay with president out of his duty to serve the american people, he wants tax reform and is staying to get it. derek jeter joining a deal to divide the miami marlins, head hunter who has some advice for the yankees legends as we also head to galveston, texas, which could get 40 inches of rain. we will tell you all about it. the market 48 points up for the dow industrials, back in a moment. ♪ everybody's hands go up ♪ today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right?

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if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. gerri: i am gerri willis from the floor of the stock exchange, guess futures trading lower, reaction to the overreaction of yesterday when they spiked substantially, exxon, conoco, mobile energy all higher, operators dismissing employees

as the storm bears down on corpus christi which is closed. we are looking at in focus material stocks rising higher, up 7%, as we watch those stocks that will benefit from the big storm bearing down on texas, 45% of the nation's refineries, stay tuned for more. ♪

stuart: there it is, janet yellen, chair of the federal reserve, has finished her speech in jackson hole, wyoming, working with european central bank guys, the president thereof, famous walk, the gentleman on the left is possibly the chair of japan central bank, the traditional walk when they come out having delivered their speeches they walk almost regally around their fans, the media screaming, moving on. texas bracing for harvey. what is it like in galveston

right now? >> reporter: the rain was coming down and the wind was whipping and right now we are in one of these lulls you experience, the outer bands of the storm start to get closer to land, that is when you get the rain and wind, not a drop is falling, a lot more is on the way especially when you take a look out behind me, the gulf of mexico lose that is the real indicator of what is spinning out there and what is to come off of galveston. normally a day people would be out there in boats and out on the beach suntanning and having a good time, this is a big tourist destination and not a soul here, one man walking his dog on the beach, the calm before the storm. you see the whitecaps, we have seen water levels rising and that is something that has been confirmed by the national

weather service. storm surge and heavy rain being primary concerns but what will happen is this thing is going to sit and stall once it hits land and that is why you are seeing forecast models of three feet of rain in some isolated areas because once it gets landed usually moves fast and breaks up, this might hover and drop rain for days. stuart: thanks. derek jeter, yankee guy trying a new position as in team owner, part of the group buying the miami marlins. it hughes, vice chair, you are what some people call an owner whisperer, a whisper to derek jeter at the moment. >> first thing you whisper is in the last we 10 years, with ownership changes, two have won championships across the board. four major sports. only been two that have won championships, you know what those are? more is in the cups. warriors and the cubs. stuart: had a change of ownership and went on to win a championship.

everybody failed. >> national football league, five ownership changes and those winning percentages 34%, two playoff appearances. stuart: that is a lousy record. what is your advice to the new owner of the marlins? >> first piece which is critical is to do your due diligence. look at the organization from two sides, look at it from the baseball side and the business side and decide what model to follow. there are various ownership models, you can be gerri jones. stuart: what model is that? >> i am in charge of everything. i do it all, market the team, select players, do all of. and take a more reduced approach like the owner of the san antonio spurs, you don't know who he is. peter holt. or you can take an approach

where you hire a coach and let him run, bill belichick. stuart: derek jeter is a star baseball player and a wealthy man. what would be your advice to him bearing in mind who is and what he has done? what kind of owner should he be? hands on or miles apart or dabbling here and there? >> if you compare into mario lemieux or michael jordan, he comes at it with the credibility instantly with the fans and constituents. he has got to be the face of the team. being the face of the team is making sure he bill the way the team is able to interact and talk because baseball has two sides, the business side which has marketing, which has sponsorship, which has tickets and the baseball side which has roster, scouting, player development and got to talk, you

have to communicate. what happens, you want to build a transparent culture. at the end of the day you need a culture that works. the reason to rent goes to the warriors is a have a culture that works. the reason her ghetto gets jimmy butler to go to minnesota, who thinks minnesota is the destination? they built a culture. stuart: around derek jeter and his performance. and who he is. >> how he plays and what he has stood for. stuart: you should get into soccer. we will have you back when you do. >> we look forward to that. stuart: thanks very much. donald trump's top economic advisor gary cohen faces a lot of pressure to resign after charlottesville but he made the decision to stay. with the president out of duty to serve the american people. even wrote a resignation letter which he did not follow through on. we will deal with that in a moment. ♪

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resignation ready and written. he did not deliver it, he stayed on the job to push tax reform. joining us now the blaze host, lawrence jones. this story of how close he came to walking out of the white house is indicative of how split the white house is, not good news for mister trump or the republicans. what say you? >> i don't know it was about the splitting of the white house as it was an emotional week. anytime you have a national conversation about race things get emotional and people start making decisions. i don't know if it is the split in the white house as it is the conversation we are having is americans. stuart: if you want tax cuts, that is -- you want america to grow its economy. there for you want gary cohen to stay because he is point man for cutting taxes.

that is the story. >> that is what affected his decision to stay. either he was going to allow the white supremacists to win outside the white house, the neo-nazis, and he can go into the white house, have his influence and get tax reform done so i he ultimately made the right decision to stand up for his country and not let him win. stuart: those of us who want tax cuts he made the right decision. moment ago the president tweeted about hurricane harvey. i have spoken with her abbott of texas about louisiana and louisiana governor edwards, closely monitoring hurricane harvey development and here to assist as needed. you are in texas right now. are you in dallas? >> i am in dallas. you will see this it in houston and galveston but the president reaching out is a good step, this is an opportunity for the

president to lead. with these national tragedies, this could be a tragedy, the president having generals in his ear and people who know how to do risk management and emergency management and having an effective plan, this is where the president should excel, he is a businessman, knows how to organize, how to deal with tragedy and manage a budget to make sure it gets done so we will see the president lead in this area, excited to see how he is going to handle the situation. stuart: you better stay put in dallas, don't head down to houston, not a good weekend in houston i suspect. >> we will be praying for them. stuart: youth you will, lawrence jones, thanks for joining us. we have more varney after this. ♪ especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor

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stuart: on your screens, the two big stories of the day. the dow industrials were up 120, now up 40.

left-hand side of the screen, that is the approaching hurricane harvey getting real close to texas. thanks, everybody, more tuning in today. -- for tuning in today. we urge you to watch us at 9:00 monday morning when we'll feel the after effects, we hope, of harvey. 9:00 monday morning. neil, it's yours. neil: thank you very much, stuart. we are following harvey, already around a category two. they're look at three feet of rain at a minimum. think of that, three feet of rain. and this is a big energy area, as you know. a good deal of our natural gas, oil comes from this neck of the woods. as i always like to remind you sometimes those of you who say, hey, you're on to accessed about storms, even if you're not in the path, it's going to have a hon strows effect on a -- monstrous effect on a variety of prices. let's go to chief meteorologist, what he is looking at. what does it look like to you so farsome. >> very bad storm.